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Tottempudi and Insolvency & Bankruptcy Code (IBC) - Summary
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Personal Guarantee and Bankruptcy Declaration
Smt. Tottempudi Kavitha was declared bankrupt under the IBC by the Adjudicating Authority, as per Section 123, which pertains to applications for bankruptcy involving personal guarantors. The order was passed after an insolvency professional was appointed to oversee the process State Bank of India VS Mrs. Tottempudi Kavitha - National Company Law Tribunal. -
Application by Creditors for Personal Guarantors
The IBC provisions, especially Sections 95 and 99, facilitate insolvency petitions filed by financial creditors against personal guarantors like Tottempudi Kavitha. Such petitions are processed under rules governing insolvency resolution for personal guarantors to corporate debtors State Bank of India vs K Padmanaban - National Company Law Tribunal. -
Limitations and Procedural Aspects
The initiation of insolvency proceedings under Section 7 of the IBC is guided by the Limitation Act, particularly Article 137, which sets time limits for recovery actions. Courts have emphasized that proceedings should be initiated within prescribed timeframes, and the process must be for genuine resolution, not malicious or fraudulent intent Tottempudi Salalith VS State Bank Of India - Supreme Court, TOTTEMPUDI SALALITH vs STATE BANK OF INDIA - Supreme Court. -
Legal Challenges and Validity
Several cases highlight challenges to the validity of insolvency proceedings involving Tottempudi, including arguments that such actions are not maintainable if initiated with malicious intent or without proper establishment of debt or default. The Supreme Court has emphasized adherence to procedural requirements and the importance of genuine debt recovery NHA Infrabuild Pvt. Ltd. VS Asit Updhayaya - National Company Law Tribunal. -
Legal Principles from Supreme Court Judgments
The Supreme Court’s rulings, notably in Tottempudi Salalith v. State Bank of India & Ors., clarify that proceedings under the SARFAESI Act or RDDB Act must align with the principles of the IBC and cannot contravene statutory provisions. The Court has also addressed the interplay between recovery laws and insolvency proceedings, emphasizing procedural fairness and legality M.D. Esthappan Infrastructure Pvt. Ltd. vs Reserve Bank Of India - Kerala, M/S. SARK SPICE PRODUCTS PVT. LTD. vs RESERVE BANK OF INDIA - Kerala. -
Application of IBC to Personal Guarantors
The IBC explicitly provides mechanisms for creditors to initiate insolvency resolution against personal guarantors, with procedural safeguards. Cases involving Tottempudi have demonstrated the application of Sections 95 and 94, allowing creditors to file insolvency petitions against guarantors to recover dues IDBI BANK LIMITED VS Sodhamati R Gutte - National Company Law Tribunal.
Analysis and Conclusion
The insolvency proceedings involving Tottempudi Kavitha are rooted in the provisions of the Insolvency and Bankruptcy Code, 2016, particularly concerning personal guarantees and creditor applications. The courts have upheld the validity of such proceedings when initiated following statutory procedures and within prescribed timeframes. Legal challenges primarily revolve around procedural compliance and the bona fide nature of the debt. Overall, the case exemplifies the IBC’s approach to personal guarantor insolvency, emphasizing legality, procedural adherence, and the rights of creditors under the law.
References:
- Insolvency and Bankruptcy Code, 2016 State Bank of India VS Mrs. Tottempudi Kavitha - National Company Law Tribunal, State Bank of India vs K Padmanaban - National Company Law Tribunal, Tottempudi Salalith VS State Bank Of India - Supreme Court, TOTTEMPUDI SALALITH vs STATE BANK OF INDIA - Supreme Court, NHA Infrabuild Pvt. Ltd. VS Asit Updhayaya - National Company Law Tribunal, M.D. Esthappan Infrastructure Pvt. Ltd. vs Reserve Bank Of India - Kerala, M/S. SARK SPICE PRODUCTS PVT. LTD. vs RESERVE BANK OF INDIA - Kerala, IDBI BANK LIMITED VS Sodhamati R Gutte - National Company Law Tribunal
- Supreme Court judgments: Tottempudi Salalith v. SBI & Ors., Mathew Varghese v. M. Amritha Kumar, and others.
Search Results for "Insolvency and Bankruptcy Code Tottempudi"
2025 Supreme(Online)(NCLT) 442 • India - National Company Law Tribunal
Dr. Venkata Ramakrishna Badarinath Nandula, Sh. Charan Singh, JJ
Insolvency and Bankruptcy Code, 2016 which is as below: - “Section 121: Application for bankruptcy. Insolvency and Bankruptcy Code, 2016 which is as below: “Section 123: Application by creditor. 123. ... As such this Adjudicating Authority hereby declares the personal guarantor/ Smt Tottempudi Kavitha, to be bankrupt and pass the following order: - ORDER (1) Mr Dommeti Surya Rama Krishna Saibaba, an insolvency professional, having r....
2025 Supreme(Online)(NCLT) 2630 • India - National Company Law Tribunal
Sanjiv Jain, Venkataraman Subramaniam, JJ
(A) Insolvency and Bankruptcy Code, 2016 - Section 95 and 99 - Personal Guarantee - Petition filed by financial creditor for insolvency ... This Petition has been filed u/s. 95 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC, 2016") r/w Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for In solvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, ....
2024 1 Supreme 654 • India - Supreme Court
ANIRUDDHA BOSE, VIKRAM NATH
Insolvency and Bankruptcy Code, 2016 – Section 7 – Limitation Act, 1963 – Article 137 – Recovery of Debts ... and Bankruptcy Act, 1993 – Section 19 (22A) – Corporate Insolvency Resolution Process – Initiation of – Period of limitation – Time ... under Section 7 of IBC would be guided by Article 137 of Limitation Act – In absence of averments or pleading, after initiation of insolvency ... In the proceeding before the NCLT, out of which this appeal arises, it was the State Bank of India....
• India - Supreme Court
ANIRUDDHA BOSE, VIKRAM NATH, JJ
(A) Insolvency and Bankruptcy Code, 2016 - Section 7 - Limitation Act, 1963 - Recovery of Debts and Bankruptcy Act, 1993 - Financial ... In the proceeding before the NCLT, out of which this appeal arises, it was the State Bank of India who had filed the application as financial creditor under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). ... In the event of the Decree Holder/Lender/Financial Creditor has/had resorted to the initiation of Insol....
2024 Supreme(Online)(NCLT) 825 • India - National Company Law Tribunal
Insolvency and Bankruptcy Code, 2016 and not on the application filed under section 94 of the Code. Hence we are of the opinion that this case so relied on by the learned counsel of the applicant is not applicable to the facts and circumstances of the present case. 16. ... Sameer Kakar, Hon’ble Member(T) Kalpana Vara vs Canara Bank & Anr 1 of 12 BEFORE THE ADJUDICATING AUTHORITY NATIONAL COMPANY LAW TRIBUNAL, DIVISION BENCH – I, AHMEDABAD CP/IB/195/AHM/2024 Filed under Section 94 of the Insolvency & #HL....
2025 Supreme(Online)(NCLT) 404 • India - National Company Law Tribunal
Mr. Praveen Gupta, Mr. Ashish Verma, JJ
Insolvency and Bankruptcy Code, 2016 is not maintainable because the Corporate Debtor has failed to establish that the initiation of the corporate insolvency resolution process is being done either fraudulently or with malicious intent for any purpose other than for the resolution of ... Now, the Hon’ble Supreme Court in Tottempudi Salaith v. State Bank of India & Ors. ... We direct the Financial Creditor to deposit a sum of Rs.1,00,000/- with the Interim Resolution Professional, to meet out the expense....
2025 Supreme(Online)(Ker) 42423 • India - IN THE HIGH COURT OF KERALA AT ERNAKULAM
Mohammed Nias C.P., J
Sections 13 (2), 13(4) and 14 of the SARFAESI Act is illegal and void, being contrary to the proviso to Section 19(1) of the Recovery of Debts and Bankruptcy Act and [2025 SCC OnLine SC 1229], Tottempudi Salalith v. State Bank of India & Ors. [(2024) 1 SCC 24], Mathew Varghese v. M. Amritha Kumar [(2014) 5 SCC 610], Indiabulls Housing Finance Ltd. v. Deccan Chronicle Holdings Ltd.
2025 Supreme(Online)(Ker) 57684 • India - IN THE HIGH COURT OF KERALA AT ERNAKULAM
BASANT BALAJI TH, J
Recovery of Debts and Bankruptcy Act, 1993 (the RDDB Act,1993), after declaring the account of the petitioners as NPA and the issuance of demand notice dated 09.06.2021. ... Ltd [MANU/SC/0774/2025), Tottempudi Salalith v. State Bank of India & Ors. [MANU/SC/1158/2023: 2023:INSC:923: (2024) 1 SCC 24), Mathew Varghese v. M Amritha Kumar [MANU/SC/0114/2014: (2014) 5 SCC 610), Indiabulls Housing Finance Ltd. v. Deccan Chronicle Holdings Ltd. ... The principles laid down in the Transcore judgment dealt with the interplay between the Recovery of Debts and #HL_ST....
2024 Supreme(Online)(NCLT) 979 • India - National Company Law Tribunal
Srivardhan Social Development Foundation) under Section 94 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "IBC, 2016") to initiate the Insolvency Resolution Process under Section 94 of the Insolvency and Bankruptcy Code, 2016 read with Rule 6 of the Insolvency and Bankruptcy ... Srivardhan Social Development Foundation) and duly authorized to file captioned application with National Company Law Tribunal at ....
2024 Supreme(Online)(NCLT) 5697 • India - National Company Law Tribunal
Under Section 95(1) of the Insolvency & Bankruptcy Code, 2016 r/w Rule 7 of the Insolvency and Bankruptcy (Application to the Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to ... The present petition is filed under Section 95 of the Insolvency and Bankruptcy Code, 2016 (“Code") r/w Rule 7 of the Insolvency and 2. ... No. 2295 of 2018 admitted the application u/s....
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